Although the European Central Bank is widely expected to raise the benchmark interest rate by another 25bp in July, the statement following the meeting is likely to heavily influence the single-currency as investors weigh the prospects for future policy. According to Credit Suisse overnight index swaps, market participants are pricing a 152% chance for a 25bp rate hike tomorrow, but ECB President Jean-Claude Trichet may soften his hawkish tone for monetary policy as Europe faces a slowing recovery. As the European periphery face record-high financing costs, the Governing Council may endorse a wait-and-see approach ... (full story)